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Tag Archives: SA-CCR

The Spread – A Rising Tide Lifts All Exchanges – 11/2 The Spread,Video,video

It seems like everybody in the options exchange space is busy setting records, and there were positive developments on the regulatory front. It’s been a good few weeks for the industry. The following are the stories referenced in this week’s episode: –FIA -> U.S. banking regulators propose SA-CCR methodology for calculating derivatives exposures –Federal Reserve -> Standardized Approach for Calculating the Exposure Amount of Derivative Contracts –Cboe -> Cboe Global Markets Reports Record Trading Activity –MIAX -> MIAX International Holdings Reports October 2018 Trading Activity –Nasdaq -> Nasdaq Volume Statistics –BusinessWire -> OCC Clears Record Monthly Volume in October –Bloomberg…

Cboe’s Head of Equity Options Joins Blockchain Startup; Derivatives exposure calculations JLN Options Newsletter,Newsletter,Options

Observations & Insight October 2018 Options Exchange Marketshare via OCC ++++++ What’s Up With the Next Gen of Traders? JohnLothianNews.com The old way to learn the trading ropes – via open outcry pits – is nearly nonexistent. So where is the next generation of traders going to come from? What is going to attract interest and enable these newbies to enter the markets? In this compilation video from FIA Expo, Cboe Global Markets Chairman of the Board and CEO Ed Tilly, YCharts President and CEO Sean Brown, and CQG Senior Vice President of Client Relations Pat Kenny discuss what is…

Fed proposes SA-CCR as derivatives exposure calculation; Panic? Options say no JLN Options Newsletter,Newsletter,Options

Lead Stories Standardized Approach for Calculating the Exposure Amount of Derivative Contracts Federal Reserve The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (together, the agencies) are inviting public comment on a proposal that would implement a new approach for calculating the exposure amount of derivative contracts under the agencies’ regulatory capital rule. The proposed approach, called the standardized approach for counterparty credit risk (SA-CCR), would replace the current exposure methodology (CEM) as an additional methodology for calculating advanced approaches total risk-weighted assets under the capital…

Volatility Goes AWOL; Corporate Currency Hedging; Good Year for Wall St. Traders Newsletter,Options

Observations & Insight Timely Capital Relief Comments From Fed Chair Powell or: The Options Market Stability Act Was On TV! Spencer Doar – JLN During Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill, Rep. Randy Hultgren asked Chairman Powell about targeted capital relief for bank-affiliated clearers of options liquidity providers. Recall that Rep. Hultgren authored legislation – the Options Market Stability Act – that just passed the House. That legislation seeks to provide relief for clearers by directing banking regulators “to consider a number of items including the availability of liquidity, the economic value of delta weighting and netting…

Timely Capital Relief Comments From Fed Chair Powell or: The Options Market Stability Act Was On TV! Blog,Options

During Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill, Rep. Randy Hultgren asked Chairman Powell about targeted capital relief for bank-affiliated clearers of options liquidity providers. Recall that Rep. Hultgren authored legislation – the Options Market Stability Act – that just passed the House. That legislation seeks to provide relief for clearers by directing banking regulators “to consider a number of items including the availability of liquidity, the economic value of delta weighting and netting of positions, safety and soundness of financial institutions and overall financial stability. The legislation also requires the Federal Reserve to submit a report to…

Implementation of SA-CCR Important For Liquid and Orderly Listed Options Markets; Seventeen years after 5,000, Nasdaq tops 6,000; What Markets Should Conclude From France’s Election Newsletter,Options

Observations & Insight Other VIXes Spencer Doar – JLN Of all the CBOE’s products, none gets media attention like the VIX. But CBOE has plenty of other VIX products, ranging from the BPVIX (CBOE/CME FX British Pound Volatility Index) to the GVZ (CBOE Gold ETF Volatility Index). The VIX plummeted yesterday to the 10 handle after the results of the first round of the French election were interpreted as positive (VIX is around 10.6 as of this writing). The media will sometimes give markets the gloss over treatment, look at the VIX and only the VIX, and declare “where’s the…

A Basel netting issue: Pushing for less burdensome capital requirements in the options market Exchanges, OTC & Clearing,Feature,Mwiki,Options,Regulation,Regulation & Enforcement

The unintended consequences of financial regulation have been seeping into the markets since the first rule was made in the wake of the financial crisis. One prime example is the leverage ratio, which determines the required capital of general clearing members. The actual calculation of the capital requirement within the Basel III leverage ratio framework is a particular sticking point for the OCC. Right now, the Current Exposure Method (CEM) is used in the calculation, whereas the OCC and a wide swath of industry participants believe that the Standardised Approach for Counterparty Credit Risk (SA-CCR) would better encapsulate the nature…